Arisinfra Solutions Limited

Industrials — Engineering & Construction · NSE

₹144.00+₹4.09 (+2.92%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Arisinfra Solutions Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Arisinfra Solutions Limited, together with its subsidiaries, engages in the trading, procuring, supplying, and distributing of raw materials for the creation of infrastructure, buildings, and construction in India.

IndustryEngineering & Construction

SectorIndustrials

Employees284

Annual revenue₹1,067 Cr

How does it make money?

Turns over ₹1,067 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 284 employees supports ₹3.76 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin10.3%

Net margin4.9%

Revenue / employee₹3.76 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

SIEMENS LTDP/E 88.8x · ROE 10.5%

What is its competitive advantage?Little sign of one

Returns on capital of 13.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE13.3%

ROE7.1%

Peer median ROE14.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +43% while net margin moved -359% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+43%

Margin effect-359%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

61/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

75/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

16.9x

1.3Y Median

470.0x

16 monthly readings · mean 382.5x · range 20.8x–641.6x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 96% below its 1.3y median of 470.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 44% below the peer median of 30.1x.

vs. its own history

Cheap

470.0x median over 16 months · -96%

vs. sector peers

Cheap

30.1x median of 3 peers · -44%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

16.9x

P/B

1.59x

EV/EBITDA

10.5x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 0.9% to 10.3% over 3 years.
Debt is being paid down
Total debt is down 69% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -13.5% to 7.1%.
Return on capital is rising
ROCE has improved from 2.4% to 13.3%.
Valuation below its historical average
At 16.9x the stock trades 96% below its own median of 470.0x.

🔴 What Needs Attention1

Inventory building faster than sales
Inventory is up 93% against revenue growth of 43% — stock may not be moving.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 9.36x — earnings must service borrowings before shareholders see anything.
🟡Inventory building faster than salesFinancial
Inventory up 93% against revenue up 43% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 0.9% to 10.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 69% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 96% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 44% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 9.36x. Interest is payable whether or not the business has a good year.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 12.7% CAGR
Latest reported year was 37.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹120 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 13.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹1,178 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.9x

Fair

Fairly valued against the generic band

P/B Ratio

1.59x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.5

Profitable

Profitable on a per-share basis

ROE

7.1%

Weak

Weak capital efficiency

ROCE

13.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

9.36x

High

High leverage

Revenue Growth (YoY)

37.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

279.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹120 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹144

Operating Margin

9.9%

Average

Average margins

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

2.64

Comfortable

Healthy short-term liquidity

52W Range Position

64%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

140.2 / 136.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹746 Cr	₹697 Cr	₹768 Cr	₹1,067 Cr	+12.7%
EBITDA	₹6 Cr	₹39 Cr	₹63 Cr	₹110 Cr	+156.7%
EBITDA Margin	0.9%	5.6%	8.1%	10.3%	—
PAT (Net Profit)	-₹14 Cr	-₹19 Cr	₹2 Cr	₹53 Cr	—
EPS	₹-1.75	₹-2.3	₹0.25	₹6.84	—
ROE	-13.5%	-13.1%	0.9%	7.1%	—
ROCE	2.4%	6.9%	20.8%	13.3%	—
Total Debt	₹224 Cr	₹276 Cr	₹343 Cr	₹70 Cr	-32.1%
Free Cash Flow	-₹24 Cr	-₹8 Cr	-₹37 Cr	₹120 Cr	—

🟢 Revenue has grown at 12.7% a year over 3 years.

🟢 EBITDA has grown at 156.7% a year over 3 years.

🟢 EBITDA Margin has risen from 0.9% to 10.3% over 3 years (+9.4 pts).

🟢 PAT (Net Profit) has turned positive, from -₹14 Cr to ₹53 Cr.

🟢 EPS has turned positive, from ₹-1.75 to ₹6.84.

🟢 ROE has risen from -13.5% to 7.1% over 3 years (+20.7 pts).

🟢 ROCE has risen from 2.4% to 13.3% over 3 years (+10.8 pts).

🟢 Total Debt has shrunk at 32.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹24 Cr to ₹120 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,041 Cr

Total Liabilities

₹290 Cr

Total Debt

₹70 Cr

Cash & Equivalents

₹101 Cr

Operating Cash Flow

₹142 Cr

Capex

-₹22 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.9%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive5 general

Arisinfra Solutions Share Price Forecast: 3 Year Outlook to 2030

Univest, 14 Jul

Compare with AMRAPALI INDUSTRIES

Equitymaster, 16 Oct

Price Action: KPI Green Energy, Arisinfra Solutions shares surge on order win; IT, media stocks gain

Moneycontrol.com, 30 SeptOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Aris Infra: Mukul Agarwal Holds 1.6% Stake

Sahi, 21 Jul

Arisinfra Solutions Limited (NSE:ARISINFRA) Might Not Be As Mispriced As It Looks After Plunging 26%

Simply Wall Street, 04 Feb

Arisinfra Solutions to meet investors on September 8, 2026

scanx.trade, 08 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate10.2/20

🟢Financial HealthStrong13.3/20

🟢GrowthStrong13.6/20

🟡ProfitabilityModerate8.3/15

🟢ValuationAttractive10.7/15

🔴RiskHigh2.4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 10% a year12.7% CAGR
✓EBITDA margin holds above 8%10.3%
✓Free cash flow remains positive₹120 Cr
✓Debt / EBITDA stays below 2x0.6x
✓ROCE stays above 10%13.3%